The Benefits of Investing in China

By
Jesus David Cano Romano
October 28, 2017

In the last three decades, China has hastily risen to the modern manufacturing juggernaut people recognize today. While China has influence over many different markets all over the globe, foreigner’s investing in China only accounts for a small part of the domestic Chinese market. President Xi Jinping has been one of the driving forces behind loosening up economic policies in China and introducing foreign firms to the once insular market. Now that China has firmly established itself as the factory of the world, it is looking to establish itself as a destination that is not only good for making things, but also for buying things.

As China tries to open itself up to foreign demand, retailers will look for products from a number of different sources. Having a product to sell through western markets as well as through Chinese markets will definitely be beneficial. The demand for foreign products will only increase as China increases to open up and globalization continues to occur. Because of this, investing in China and building contacts with Chinese businesses that feed into your global network can lead to large returns.

In any scenario, finding suppliers that produce products now will only give you a leg up when people start utilizing Chinese methods of shopping, a trend that can already be seen with the rise of sites like AliExpress and DHGate in the U.S. When building a global network, it best to utilize as many resources as you have access to. As the stock market is opened up more and more to outsiders, Chinese businesses will see an explosion of Western money that will serve to increase consumerism on both sides. This will undoubtedly cause demand to skyrocket and place companies with existing products in a very good position. It is an excellent time to begin investing in a country with nowhere to go but up.